Cardano (ADA) is crucial after days of heightened volatility and excitement among crypto investors. While other altcoins have experienced significant increases, Cardano has yet to see the same breakout, leaving analysts and traders searching for confirmation of an uptrend.
Despite the lack of a major move, optimism remains high for ADA as market watchers await a signal to begin the recovery.
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Top analyst and investor Carl Runefelt recently shared technical analysis suggesting that Cardano could be on the verge of a rally, potentially pushing ADA to $0.54.
This prediction generated enthusiasm within the Cardano community, but the next few days will be critical in determining whether the ADA can proceed with a break.
As the market remains volatile, traders will closely monitor Cardano’s price action for signs of a confirmed uptrend.
Cardano Holding Above Key Level
Cardano is trading above a key resistance level of $0.33, generating optimism among analysts and investors. This crucial price could be the springboard that propels ADA to new highs.
Analysts in the crypto community believe Cardano is ripe for a breakout, and some expect a recovery in the coming days.
Prominent investor and analyst Carl Runefelt recently shared a technical analysis on Xhighlighting the formation of a bullish pattern on the Cardano chart. According to Runefelt, if ADA manages to break this pattern upwards, the next target could reach $0.54, representing a potential gain of 58% from current levels.
This prediction has generated excitement as ADA holders look for signs of a sustained upward trend following a period of consolidation.
However, not all scenarios point to a smooth journey for Cardano. If ADA fails to break through this pattern, further consolidation or a potential correction could be on the horizon.
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The $0.33 level is now a key marker for traders and investors to watch closely in the coming days, as it could signal the start of a major price move – or the continuation of a more uncertain path for Cardano.
ADA Technical Analysis
Cardano (ADA) price action has been underwhelming compared to other altcoins. Currently trading at $0.34, ADA has seen a 7% decline from its recent high of $0.37 set on Tuesday. Despite some volatility, the price remains below the critical 200-day exponential moving average (EMA) at $0.40 following a failed breakout attempt in late September.
For bulls to regain control, ADA must reclaim the $0.40 level and push to establish a new local high above $0.41. A breakout above these levels would signal a potential change in momentum and spark renewed optimism among investors.
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However, breaking above the $0.34 mark could lead to more downward pressure. If this level is lost, a correction to lower demand areas around $0.30 is expected. Traders are watching closely as this level could determine whether Cardano will continue to underperform or regain its position in the market.
Featured image of Dall-E, TradingView chart